The National Student Financial Aid Scheme (NSFAS) has implemented a system to stop students from falsifying information on their applications. This system was established after it was discovered that over four years, more than 40 000 students had used false information to receive funding from NSFAS.
These 40 000 students cost the organisation over R5 billion.
An investigation was conducted by the Special Investigating Unit (SIU) between 2018 and 2021. A number of students were subsequently defunded following these findings.
This has caused an outcry at several public universities, with many students claiming that they have been wrongfully defunded.
Back in April, NSFAS warned against students submitting applications using false information stating that they would be immediately defunded.
How Were Fraudulent Applications Being Approved?
NSFAS spokesperson, Slumezi Skosana, states that in the “distant past” students were creative in the ways that they defrauded the organisation. Students would present ID copies that had been certified by police, leading NSFAS officials to believe that they were legitimate.
However, when questioned about how it was so easy for this to go unnoticed, Skosana says that if a student presented a payslip from a parent, NSFAS simply assumed that the student was being truthful.
Previously, NSFAS did not perform any cross-checks to verify that the information and supporting documents provided were authentic, allowing thousands of falsified applications to slip through the cracks.
New System To Prevent Fraudulent Applications
In an attempt to stop this fraud from happening, NSFAS has put a new system in place.
This new system involves cross-referencing the data provided on applications with external parties including the South African Social Security Agency (Sassa), SARS and the Department of Home Affairs. This is done to confirm that the personal information provided by the applicant is true.
NSFAS has stated that while there is pushback on these changes, it is important that we focus on the positive aspects.
Other NSFAS Challenges
Other than the defunding of students, delays in paying out allowances and challenges with the new payment system have also resulted in student protests.
Students are being charged extremely high bank charges for making withdrawals, while some have still not received their July allowances which should have been disbursed on the first day of the month.
This new NSFAS payment system was implemented because institutions were failing to disburse allowances to students on time, however, it has come with its own set of challenges.
NSFAS first stated that students would face bank charges of R12 per month and would not be charged extra for withdrawals, however, this was found to be false.
Others say that their NSFAS statuses suddenly changed from “approved” to “rejected” and their payments were halted in May. This has left students stranded as many have been kicked out of their residences or are unable to afford food due to delays in receiving their meal allowances.
Students are demanding that academic programmes be halted until the situation is rectified as they cannot be expected to focus on their studies without food in their stomachs.
NSFAS is currently in the process of investigating these claims and will implement appropriate solutions if these allegations are found to be true.
Meanwhile, discussions are ongoing between universities, stakeholders, student unions and NSFAS to establish workable solutions
